NWPX Infrastructure Inc (NWPX) 2024 Q3 法說會逐字稿

Greetings and welcome to the Northwest Pipe Company third quarter, 2024 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this concert is being recorded. It is now my pleasure to introduce your host, Scott Montross CEO. Thank you. You may begin.

您好，歡迎參加西北管道公司 2024 年第三季財報電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行問答環節。如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。提醒一下，這場音樂會正在錄製中。現在我很高興向您介紹主持人，斯科特·蒙特羅斯首席執行官。謝謝。你可以開始了。

Good morning and welcome to Northwest Pipe Company's third quarter, 2024 earnings conference call. My name is Scott Montross and I am President and CEO of the company. I'm joined today by Aaron Wilkins, our Chief Financial Officer. By now, all of you should have access to our earnings press release which was issued yesterday. October 30th 2024 at approximately 4 p.m. Eastern time. This call is being webcast and it is available for replay as we begin. I'd like to remind everyone that the statements made on this call regarding our expectations for the future are forward-looking statements and actual results could differ materially from expectations. Please refer to our most recent form 10-K for the year ended December 31st 2023. And in our other sec filings for a discussion of such risk factors that could cause actual results to differ materially from our expectations. We undertake no obligation to update any forward-looking statements.

早安，歡迎參加西北管道公司 2024 年第三季財報電話會議。我叫史考特‧蒙特羅斯，是公司的總裁兼執行長。今天我們的財務長亞倫威爾金斯 (Aaron Wilkins) 也加入了我的行列。到目前為止，你們所有人都應該可以閱讀我們昨天發布的收益新聞稿。2024 年 10 月 30 日下午 4 點左右東部時間。該電話會議正在網路上直播，並且可以在我們開始時重播。我想提醒大家，本次電話會議中有關我們對未來的期望的聲明均為前瞻性聲明，實際結果可能與預期有重大差異。請參閱我們截至 2023 年 12 月 31 日的最新年度 10-K 表格。在我們其他提交給證券交易委員會的文件中，我們討論了可能導致實際結果與我們的預期有重大差異的風險因素。我們不承擔更新任何前瞻性陳述的義務。

Thank you all for joining us today. I'll begin with a review of our third quarter performance and outlook for 2024. Erin will then walk you through our financials in greater detail. Once again, we delivered strong third quarter results, achieving new quarterly records in several key financial metrics. Our performance was driven by growth on the residential side of our precast business as well as ongoing strength in our steel pressure pipe business.

感謝大家今天加入我們。我將首先回顧我們第三季的業績和 2024 年的展望。然後，艾琳將向您詳細介紹我們的財務狀況。我們再次取得了強勁的第三季業績，在幾個關鍵財務指標上創下了新的季度記錄。我們的業績是由預製件業務住宅方面的成長以及鋼壓力管業務的持續強勁所推動的。

Our consolidated net sales increased 9.7% year over year to 130.2 million outpacing our strong second quarter and reflecting the highest quarterly revenue ever reported by the company and the $27 million of gross profit generated in the third quarter was also a quarterly record.

我們的綜合淨銷售額年增9.7%，達到1.302 億美元，超過了第二季度的強勁表現，反映了公司有史以來最高的季度收入，第三季度產生的2700 萬美元的毛利潤也創下了季度記錄。

In addition, our focus on effective working capital management helped drive another quarter of strong cash flow generation to further break down our segment level results revenue from our steel pressure pipe segment remained at near record levels totaling 85.9 million and increasing 6.7% year over year. In line with our expectations, our performance primarily reflected continued high production levels through the ongoing strength in the bidding environment that has carried over into the second half of 2024 as well as changes and project timing. Our sp backlog including confirmed orders was 282 million as of September 30th, down from 348 million as of June 30th 2024 and down from 335 million as of September 30th 2023.

此外，我們對有效營運資本管理的關注幫助推動了另一個季度強勁的現金流生成，進一步細分了我們的分部層面，鋼壓力管分部的收入保持在接近歷史最高水平，總計8590 萬美元，年增6.7%。與我們的預期一致，我們的業績主要反映了持續到 2024 年下半年的招標環境的持續強勁以及變化和專案時間表帶來的持續高產量水準。截至 9 月 30 日，我們的 SP 積壓訂單（包括已確認訂單）為 2.82 億，低於截至 2024 年 6 月 30 日的 3.48 億，也低於截至 2023 年 9 月 30 日的 3.35 億。

Although our backlog declined, our SPP team has done a tremendous job executing on bids and projects.

儘管我們的積壓訂單有所下降，但我們的 SPP 團隊在執行投標和專案方面做得非常出色。

We attribute the third quarter decline in backlog primarily to the timing of expected job awards our mix and backlog and to a lesser extent lower steel prices. Nevertheless, we believe our backlog remains healthy and the bidding environment remains strong with a significant number of tons expected to bid in the fourth quarter. As a result, we expect our backlog to improve through year end. Our third quarter performance was partially offset by lower realized selling prices due primarily to lower raw material costs. While steel prices were fairly volatile throughout the course of the third quarter, they appear to be stabilizing in the $700 per ton range with lead times standing at about 4 to 5 weeks.

我們將第三季積壓訂單的下降主要歸因於我們的組合和積壓的預期工作獎勵的時間，以及較小程度的鋼材價格下降。儘管如此，我們相信我們的積壓仍然健康，投標環境仍然強勁，預計第四季度將有大量噸投標。因此，我們預計我們的積壓工作到年底將會有所改善。我們第三季的業績被主要由於原物料成本下降導致的銷售價格下降所部分抵銷。儘管整個第三季鋼材價格相當波動，但似乎穩定在每噸 700 美元的範圍內，交貨時間約為 4 至 5 週。

Now, turning to our precast segment, precast revenue increased 15.8% year over year to a new quarterly record of 44.3 million driven by strong operational execution by our teams in the field and a backdrop of continued robust demand on the residential side of our Geneva business which resulted in strong production and shipment levels.

現在，轉向我們的預製件部門，預製件收入同比增長 15.8%，達到 4430 萬美元的新季度記錄，這得益於我們現場團隊強大的運營執行力以及日內瓦業務住宅方面持續強勁的需求這導致了強勁的生產和出貨水準。

However, reduced shipments on the nonresidential construction related portion of our precast business at Park offset some of this strength mainly due to the continued impact of current interest rate environment. On the commercial construction portion of the business, we expect this to reverse and become a tailwind as rates continue to come down to a lesser extent. Our production was also impacted by the severe weather events we experienced in Texas in July.

然而，我們公園預製件業務中非住宅建築相關部分的出貨量減少抵消了部分優勢，這主要是由於當前利率環境的持續影響。在商業建築業務方面，我們預計這種情況將會逆轉，並成為順風車，因為費率繼續在較小程度上下降。我們的生產也受到 7 月德克薩斯州經歷的惡劣天氣事件的影響。

Currently in the nonresidential construction market for projects that are going in the planning, which is generally about 12 months prior to breaking ground. The commercial and institutional segments are up 31% and 4% respectively versus last year's levels. As interest rates fall, the length of time between planning and breaking ground is expected to compress as a result. We are expecting upcoming near term strength in the nonresidential market.

目前，非住宅建築市場上的項目正在規劃中，通常在破土動工前 12 個月左右。商業和機構領域比去年的水準分別成長了 31% 和 4%。隨著利率下降，規劃和破土動工之間的時間預計會縮短。我們預計非住宅市場近期將走強。

On the pricing side, the residential part of our precast business has enacted multiple price increases throughout 2024 driven by strong demand that we've experienced at the geneva locations. However, our nonresidential precast business experienced some downward pricing pressure as a result of the elevated interest rate environment and the negative impact it has had on the commercial construction demand with the initial fed 50 basis point rate cut in September and the additional cuts that are expected before the year end, we expect the nonresidential construction market to strengthen in the near term as of September 30th. Our precast order book totaled 57 million down modestly from 62 million as of June 30th 2024. Further reflecting the resilience of this segment as we enter the traditionally slower time of the year and it was up from 52 million as of September 30th 2023.

在定價方面，由於日內瓦工廠的強勁需求，我們預製件業務的住宅部分在 2024 年經歷了多次價格上漲。然而，由於利率環境上升以及聯準會9月份首次降息50個基點以及預期的進一步降息對商業建築需求產生的負面影響，我們的非住宅預製件業務經歷了一些下行定價壓力年底前，我們預計截至9 月30 日的短期內非住宅建築市場將會走強。截至 2024 年 6 月 30 日，我們的預製訂單總量為 5,700 萬套，略低於 6,200 萬套。隨著我們進入一年中傳統上較慢的時期，該細分市場的彈性進一步體現，截至 2023 年 9 月 30 日，這一數字為 5,200 萬。

Our consolidated gross profit for the third quarter increased 40% year over year to 27 million. A new quarterly gross profit record for the company which resulted in a strong gross margin of 20.8%. Up from 16.3% in the third quarter of 2023.

我們第三季的綜合毛利年增40%至2700萬。公司季毛利創下新紀錄，毛利率高達 20.8%。高於 2023 年第三季的 16.3%。

This is the strongest quarterly gross margin. We've reported for the current SPP in precast configuration of the company.

這是毛利率最強的季度。我們已經報告了該公司目前預製配置中的 SPP。

Our SP P gross margin of 19.4% was strong increasing by approximately 580 basis points over the prior year period and 40 basis points over the prior quarter, primarily due to high production volume with strong overhead absorption as well as changes in product mix. This in addition to the ongoing strength in the bidding activity, we've been experiencing our precast broche margin of 23.5% improved by approximately 160 basis points over the prior year period and 140 basis points over the prior quarter, primarily resulting from the strength in the residential construction market as well as changes in product mix margins on the residential construction site at the Geneva location strengthened versus the year ago quarter. As indicated, nonresidential commercial construction market demand has been adversely affected by the highter rate environment creating some margin compression. In addition, early third quarter, severe weather related impacts on our production in shipping days, not only reduced early third quarter revenue at the park facilities but also reduced production levels leading to lower overhead absorption, further impacting nonresidential margins.

我們的 SP P 毛利率為 19.4%，較上年同期成長約 580 個基點，較上一季成長約 40 個基點，這主要是由於高產量、強勁的管理費用吸收以及產品結構的變化。除了招標活動的持續強勁外，我們的預製構件利潤率為 23.5%，比去年同期提高了約 160 個基點，比上一季度提高了 140 個基點，這主要是由於住宅建築市場以及日內瓦住宅建築工地產品組合利潤率的變化與去年同期相比有所加強。如上所述，非住宅商業建築市場需求受到高利率環境的不利影響，造成一定的利潤率壓縮。此外，第三季初，與惡劣天氣相關的運輸天數對我們的生產產生了影響，不僅減少了第三季初園區設施的收入，而且還降低了生產水平，導致間接費用吸收降低，進一步影響了非住宅利潤率。

Next, I would like to provide an update on our precast product spread strategy to promote organic growth in the business year-to-date. We have bid on over $47 million worth of projects outside of the state of Texas and booked approximately $8 million worth of orders as a result of our ongoing efforts to enhance capacity utilization at our Texas based precast plants to maximize overall efficiency and production volume. Further, we gained additional traction on products spread at the Geneva plants in Utah by booking approximately $1.7 million of park related projects. Our goal is to book in excess of $2 million worth of park related projects at Geneva in 2024. As previously noted. Once the park precast products established at the Utah locations, we plan to expand our product spread strategy to additional current Northwest pipe geographic locations. This is in the planning stage and is scheduled to occur over the next couple of years.

接下來，我想提供有關我們預製產品傳播策略的最新信息，以促進今年迄今為止的業務有機增長。由於我們不斷努力提高德州預製工廠的產能利用率，以最大限度地提高整體效率和產量，我們已經投標了德州以外價值超過4700 萬美元的項目，並預訂了價值約800 萬美元的訂單。此外，透過預訂約 170 萬美元的園區相關項目，我們在猶他州日內瓦工廠的產品推廣上獲得了額外的吸引力。我們的目標是 2024 年在日內瓦預訂價值超過 200 萬美元的公園相關項目。如前所述。一旦公園預製產品在猶他州地點建立起來，我們計劃將我們的產品傳播策略擴展到其他目前的西北管道地理位置。這正處於規劃階段，預計在未來幾年內發生。

Further to expanding our capacity. We are pleased to report that our investment in the new reinforced concrete pipe and manhole mill at our Salt Lake City Utah facility is near completion. This will unlock additional production capacity and capabilities, positioning the geneva business for additional growth.

進一步擴大我們的能力。我們很高興地報告，我們在猶他州鹽湖城工廠對新鋼筋混凝土管道和沙井磨機的投資已接近完成。這將釋放額外的生產能力和能力，為日內瓦業務的進一步成長奠定基礎。

In addition to our organic growth activities, we are continuing to actively evaluate M&A opportunities in the precast related space that would help accelerate progress in our precast strategy by increasing our manufacturing capabilities and production efficiencies and expanding our geographic reach and product portfolio. The ideal candidate would be accretive to our earnings, possess strong potential for organic growth, enhance our margins and deliver consistent positive cash flow generation properly, execute our growth strategy, repaying debt. We've occurred to finance the 2021 acquisition of Park USA remains a top strategic focus of our capital allocation philosophy and in the absence of accretive M&A opportunities, we may opt to repurchase shares of our common stock while we did not repurchase any shares during the third quarter, we remain opportunistic in our approach. Since the initial authorization of our share repurchase in November of 2023 we've bought back a total of 174,000 shares for $5.1 million as of September 30th. Before I conclude, I'd like to summarize our outlook for the fourth quarter of 2024 in our sp business. We anticipate a stronger fourth quarter than we've seen in recent years. Despite it generally being the slowest quarter of the year due to two major holidays as well as as expected weather related events. Nevertheless, we expect revenue and gross margins to be relatively strong for 1/4 quarter of a year, primarily related to a mix of projects that we've booked and their overall impact on production volume.

除了我們的有機成長活動外，我們還在繼續積極評估預製相關領域的併購機會，這將有助於透過提高我們的製造能力和生產效率以及擴大我們的地理範圍和產品組合來加速我們預製策略的進展。理想的候選人將增加我們的收益，擁有強大的有機成長潛力，提高我們的利潤並適當地產生持續的正現金流，執行我們的成長策略，償還債務。我們碰巧為2021 年收購Park USA 提供資金仍然是我們資本配置理念的首要戰略重點，在缺乏增值併購機會的情況下，我們可能會選擇回購我們的普通股，儘管我們在2021 年期間沒有回購任何股票。自 2023 年 11 月首次授權回購股票以來，截至 9 月 30 日，我們已以 510 萬美元回購了總計 174,000 股股票。在結束之前，我想總結一下我們對 2024 年第四季 SP 業務的展望。我們預計第四季將比近年來更強勁。儘管由於兩個重大假期以及預期的天氣相關事件，它通常是一年中最慢的季度。儘管如此，我們預計 1/4 個季度的收入和毛利率將相對強勁，這主要與我們已預訂的項目組合及其對產量的整體影響有關。

We also expect backlog to remain strong by historical standards, Given the volume of expected steel pressure pipe bidding for the remainder of 2024. Further, we remain encouraged by the amount of activity we're seeing on our current and upcoming water transmission projects which can be found detailed in our investor presentation on the investor relations portion of our website. We continue to expect a healthy bidding year in 2025 similar to 2024 levels in the precast business. We are expecting our fourth quarter revenue to be down sequentially from the record third quarter. We just reported with relatively stable gross margins.

鑑於 2024 年剩餘時間的預期鋼製壓力管招標量，我們也預期按照歷史標準，積壓訂單將保持強勁。此外，我們仍然對當前和即將到來的輸水項目的大量活動感到鼓舞，這些活動可以在我們網站投資者關係部分的投資者介紹中找到詳細資訊。我們繼續預期 2025 年預製件業務的投標將維持在 2024 年的水準。我們預計第四季的營收將比創紀錄的第三季連續下降。我們剛剛報告了相對穩定的毛利率。

We continue to believe in the strength of the precast business in the mid to long term. Given the significant level of pent up demand specifically for residential housing and a growing need for infrastructure spending in the US in our growing market position.

我們仍然相信預製件業務中長期的實力。鑑於我們不斷增長的市場地位，美國對住宅的需求被壓抑，並且對基礎設施支出的需求不斷增長。

In summary, I'm very pleased with the strong operational and financial performance we delivered in the third quarter. Thank you to all of our team members for your continued dedication to success and safety in the field as we execute our growth strategy in pursuit of enhanced shareholder and stakeholder value. Our performance continues to be bolstered by strong bidding environment in 2024 that is anticipated to remain elevated throughout the balance of the year and into 2025. Looking ahead, our priorities remain on one, maintaining a safe workplace where our employees are proud to work. Two persistently focusing on margin over volume three continuing to implement cost reductions and efficiencies at all levels of the company or intensifying our focus on strategic acquisition opportunities to grow the company and five in the absence of M&A opportunities returning value to our shareholders through opportunistic share repurchases. I will now turn the call over to Aaron who will walk you through our financials in greater detail.

總之，我對我們在第三季實現的強勁營運和財務業績感到非常滿意。感謝我們所有的團隊成員，在我們執行成長策略以追求更高的股東和利害關係人價值的過程中，你們持續致力於該領域的成功和安全。2024 年強勁的招標環境將繼續提振我們的業績，預計這一環境將在今年餘下時間和 2025 年保持在高水準。展望未來，我們的首要任務仍然是維持一個安全的工作場所，讓我們的員工能夠自豪地工作。其中兩項持續關注利潤率高於銷量，三項繼續在公司各個層面實施成本削減和效率提高，或加強對戰略收購機會的關注以促進公司發展，五項在缺乏併購機會的情況下通過機會性股票回購為股東回報價值。我現在將把電話轉給亞倫，他將向您詳細介紹我們的財務狀況。

Thank you, Scott and Good morning, everyone beginning with our third quarter, profitability consolidated net income was 10.3 million or $1.02 per diluted share compared to 5.8 million or 58¢ per diluted share. In the third quarter of 2023 consolidated net sales increased 9.7% to 130.2 million compared to 118.7 million in the year ago quarter, steel pressure pipe segment sales increased 6.7% to 85.9 million compared to 80.5 million in the third quarter of 2023. The improvement was driven by an 18% increase in tons produced resulting primarily from improved market demand and in a continued strong bidding environment as well as changes in project timing was partially offset by a 9% decrease in selling price per ton due to lower raw material costs.

謝謝斯科特，大家早安，從第三季開始，盈利能力綜合淨利潤為1030 萬美元，即稀釋後每股收益1.02 美元，而同期淨利潤為580 萬美元，即稀釋後每股收益58美分。2023年第三季度，合併淨銷售額成長9.7%，至1.302億美元，較去年同期的1.187億美元成長6.7%，達到8,590萬美元，較2023年第三季的8,050萬美元成長6.7%。這項改善的推動因素是產量增加了18%，這主要是由於市場需求改善、招標環境持續強勁以及專案時間的變化，但由於原材料下降導致每噸售價下降9%，部分抵消了這一影響。

Precast segment sales increased 15.8% to a new quarterly record of 44.3 million compared to 38.2 million in the third quarter of 2023.

預製件細分市場銷售額成長 15.8%，達到 4,430 萬套的新季紀錄，而 2023 年第三季為 3,820 萬套。

This was driven by a 35% increase in volume shift which was partially offset by a 14% decrease in selling prices resulting from changes in product mix.

這是由銷量變化 35% 的增長推動的，但產品組合變化導致的售價下降 14% 部分抵消了這一增長。

Our Geneva business continued its strong performance on resilient demand in Utah. While the headwinds for commercial construction demand in Texas continued encumbering our park business that was also slowed by weather related delays.

由於猶他州的需求強勁，我們的日內瓦業務持續保持強勁表現。儘管德州商業建築需求的不利因素繼續阻礙我們的公園業務，但天氣相關的延誤也導致了公園業務的放緩。

As a reminder, the products we manufacture are unique and therefore shipment volumes. In the case of precast production volumes. In the case of steel pressure pipe and the corresponding average sales prices for both segments do not always provide comparable metrics between periods as they are highly dependent on the composition of each segment's product mix.

提醒一下，我們生產的產品是獨一無二的，因此出貨量也很大。就預製件生產量而言。就鋼製壓力管道而言，兩個細分市場的相應平均銷售價格並不總是提供不同時期之間的可比較指標，因為它們高度依賴於每個細分市場的產品組合的組成。

Consolidated. Gross profit was also a record increasing 40% to 27 million or 20.8% of sales compared to 19.3 million or 16.3% of sales in the third quarter of 2023 gross profit increased 52.4% to 16.6 million or 19.4% of segment sales compared to gross profit of 10.9 million or 13.6% of segment sales in the third quarter. 2023 primarily due to higher production volume, resulting from improved market conditions.

合併。毛利也創紀錄地成長了40%，達到2,700 萬美元，佔銷售額的20.8%，而2023 年第三季的毛利為1,930 萬美元，佔銷售額的16.3%；與毛利相比，毛利成長了52.4%，達到1,660 萬美元，佔部門銷售額的19.4%第三季銷量為 1,090 萬輛，佔該部門銷售額的 13.6%。2023 年，主要是由於市場狀況改善導致產量增加。

Precast gross profit increased 24% to 10.4 million or 23.5% of precast sales from 8.4 million or 21.9% of segment sales in the third quarter of 2023 primarily due to increased shipment volume particularly in Utah.

預製件毛利從2023 年第三季的840 萬件（佔分部銷售額的21.9%）成長24% 至1,040 萬件（佔預製件銷售額的23.5%），主要是由於出貨量增加，尤其是在猶他州。

Selling general and administrative expenses increased 13.1% to 11.6 million or 8.9% of sales compared to 10.2 million in the third quarter of 2023 or 8.7% of sales selling general and administrative expenses increased 13.1% or 11.6 million or 8.9% of sales compared to 10.2 million in the third quarter of 2023 or 8.7% of sales.

銷售一般及管理費用成長13.1%，至1,160 萬美元，佔銷售額的8.9%，較2023 年第三季的1,020 萬美元，佔銷售額的8.7% 銷售一般及管理費用增長13.1%，至1,160 萬美元，佔銷售額的8.9%，較2023 年第三季的10.2 季成長13.1%，即1,160 萬美元，佔銷售額的8.9% 2023 年第三季銷售額為100 萬美元，佔銷售額的8.7 %。

The increase was primarily due to higher incentive compensation expense.

增加的主要原因是激勵補償費用增加。

Our non cash incentive compensation expense in the third quarter of 2024 was 1.2 million compared to 0.7 million in the year ago quarter for the full year of 2024. We now expect our consolidated selling general and administrative expenses to be in the range of approximately 47 million to 48 million depreciation and amortization expense. In the third quarter of 2024 was 5.2 million compared to 4 million in the year ago quarter.

我們 2024 年第三季的非現金激勵補償費用為 120 萬美元，而 2024 年全年上年同期為 70 萬美元。我們現在預計我們的綜合銷售一般和管理費用將在約 4700 萬至 4800 萬折舊和攤銷費用範圍內。2024 年第三季為 520 萬，去年同期為 400 萬。

We expect depreciation and amortization expense to be approximately 19 million in the full year of 2024.

我們預計2024年全年折舊及攤提費用約為1,900萬。

Interest expense increased to 1.5 million from 1.2 million in the third quarter of 2023. Due primarily primarily to higher interest rates and an increase in our average daily borrowings.

利息支出從 2023 年第三季的 120 萬增加至 150 萬。主要是由於利率上升和我們的平均每日借款增加。

The full year 2024 we expect interest expense to be approximately 6 million.

我們預計2024年全年利息支出約600萬。

Our third quarter income tax expense was 3.7 million resulting in an effective income tax rate of 26.3% compared to 2 million in the prior year quarter or an effective income tax rate of 25.7%.

我們第三季的所得稅費用為 370 萬美元，有效所得稅率為 26.3%，而去年同期為 200 萬美元，有效所得稅率為 25.7%。

Our tax rates for the third quarters of 2024 and 2023 were impacted by non deductible permanent differences.

我們 2024 年和 2023 年第三季的稅率受到不可抵扣永久差異的影響。

We now expect our tax rate for the full year of 2024 to be within the range of 20% to 21%.

我們現在預計 2024 年全年的稅率將在 20% 至 21% 的範圍內。

The change in our expectation is due to the statute of limitations that have expired on uncertain tax positions during the fourth quarter.

我們預期的變化是由於第四季度不確定的稅收狀況的時效已到期。

Now I will transition to our financial condition net cash provided by operating activities. 22.7 million in the third quarter of 2024 compared to 16.9 million in the third quarter of 2023 due to the company's improved profitability, improving cash flows remains a key strategic focus of our business and critical for the execution of both our growth and stockholder return priorities.

現在我將轉換到我們的財務狀況由經營活動提供的淨現金。由於公司獲利能力提高，2024 年第三季的營收為2,270 萬美元，而2023 年第三季為1,690 萬美元，改善現金流仍然是我們業務的關鍵策略重點，對於執行我們的成長和股東回報優先事項至關重要。

While our third quarter free cash flow has improved. The working capital needs of our steel pressure pipe business can be highly variable between quarters and therefore, we concentrate on the annual performance of this key metric.

雖然我們第三季的自由現金流有所改善。我們的鋼壓力管道業務的營運資金需求在季度之間可能存在很大差異，因此，我們專注於此關鍵指標的年度表現。

We continue to anticipate free cash flows to range between 19 million and 25 million for the full year 2024.

我們繼續預計 2024 年全年自由現金流將在 1,900 萬至 2,500 萬之間。

Our capital expenditures totaled 6 million in the third quarter of 2024 compared to 4.8 million in the prior year quarter.

2024 年第三季我們的資本支出總計 600 萬美元，而去年同期為 480 萬美元。

As a reminder, we anticipate completion of the new concrete pipe mill project in Salt Lake City by year end which after successful commissioning is expected to improve production yields and efficiencies on reinforced concrete pipe and manholes. We produce and sell out of that facility.

提醒一下，我們預計鹽湖城的新混凝土管廠計畫將於年底完工，成功調試後預計將提高鋼筋混凝土管和沙井的產量和效率。我們在該工廠生產和銷售。

Anticipate our total CapEx to be in the range of 20 million to 22 million for full year 2024 which includes approximately 8 million of investment in our new reinforced concrete pipe mill and associated building building. And the remainder primarily for standard capital replacement.

預計 2024 年全年我們的資本支出總額將在 2,000 萬至 2,200 萬美元之間，其中包括對新鋼筋混凝土管廠和相關建築的約 800 萬美元投資。其餘的主要用於標準資本置換。

As of September 30th 2024 we had 60.7 million of outstanding borrowings on our credit facility leaving approximately 63 million in additional borrowing capacity on our credit line.

截至 2024 年 9 月 30 日，我們的信貸額度上有 6,070 萬筆未償還借款，我們的信貸額度上還有約 6,300 萬筆額外借款能力。

In summary, we were pleased to deliver another very strong quarter of financial performance and the consecutive quarterly records for consolidated gross profit. Our steel pressure pipe business is well positioned for the remainder of the year and into 2025 and our pre cat business returned a new quarterly revenue record for that segment.

總而言之，我們很高興再次實現強勁的季度財務業績，並連續創下合併毛利季度記錄。我們的鋼製壓力管道業務在今年剩餘時間和 2025 年處於有利地位，我們的預催化業務在該領域創下了新的季度收入記錄。

These achievements are made possible by our employees exceptional execution.

這些成就得益於我們員工卓越的執行力。

I would like to thank each of them for their commitment to safety as well as our shareholders for their continued support and trust in Northwest Pipe Company.

我要感謝他們每個人對安全的承諾，以及我們的股東對西北管道公司的持續支持和信任。

I will now turn it over to the operator to begin the question and answer session.

我現在將把它交給接線員以開始問答環節。

Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two. If you would like to remove your question from the queue for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys one moment. While we pull for our first question.

謝謝。我們現在將進行問答環節。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路已在問題佇列中。您可以按星二號。如果您想從使用揚聲器裝置的參與者群組中刪除您的問題，可能需要在按星號鍵之前拿起聽筒。當我們提出第一個問題時。

Our first question comes from Brett Dillman with D A Davidson. Please proceed.

我們的第一個問題來自 D A Davidson 的 Brett Dillman。請繼續。

Hey, good morning.

嘿，早安。

Good morning, Marret.

早安，馬雷特。

Hey Scott or Eric. Just on the the backlog for the quarter down 16% year on year. How much of that decline is just comparisons of lower steel prices versus, you know, just what you burned in the quarter in terms of volume.

嘿斯科特或埃里克。僅就該季度的積壓量而言，年減了16%。其中有多少下降只是將較低的鋼材價格與本季燃燒的數量進行比較。

Yeah, I think it's, it's a little bit of the decline Brent, but right now it's, it's waiting for some of these jobs awards that, you know, we've been notified that we're going to get are a little bit slower coming in. You know, that's a piece of it and it's just how things are bidding and, you know, as we're looking at this, we expect the backlog actually to start going up through you at year end. And ultimately the way things were bidding earlier, we thought it was going to go down. So I think that that the backlog is strong and you know what I would say about, you know, the pricing level, you know, the steel costs are probably down for us about 22% versus where they were year over year, but the price is only down 9%. So the price is staying up there pretty good. It's just a matter of job timing being awarded and we feel pretty comfortable with the backlog that we're going to carry out at the end of the end of this year. And what we're going into with the bidding environment next year looks to be pretty similar. So, and what I would say about, you know, the current bidding environments or the bidding levels, I mean, these are, these are, these are okay years with the amount of tons that are bidding in the steel pressure pipe markets, but they're not huge years. And ultimately, with the IJ A funding that's out there, we think that those, those numbers are going to really jump up as we get out to 2,627 and 28 based on the amount of projects that are coming through. So I think we've got a pretty long runway with strong backlog in front of us and the steel price is going to jump up and down. But I think the most important thing right now, Bren is the margin on the steel pressure pipe side is responding positively, you know, getting up to 19.4% even in an environment when it's just a okay, bidding level in the environment and a lot of that's due to the consolidation that's happened in the business. So we're pretty comfortable with the with what's going on. Steel price is going to fluctuate. And, you know, it seems like there's this invisible barrier that's at around $700 a ton where it really doesn't get much lower than that where, you know, 25 years ago in the steel business, you know, you saw things drop off the cliff like a rock, you don't see that anymore. So it seems to get down to around $700 a ton and then start to bounce back up because we've seen steel price increase announcements coming out which will ultimately affect what the amount of backlog is too. Now, that's a long winded answer on, on probably a relatively simple question that you asked. But I thought I had to get a bunch of that stuff in there for you.

是的，我認為，這是布倫特的一點下降，但現在，它正在等待其中一些工作獎項，你知道，我們已經被通知，我們將要慢一點進來。你知道，這就是其中的一部分，事情就是這樣進行的，你知道，當我們正在考慮這個問題時，我們預計積壓的訂單實際上會在年底開始增加。最終，按照先前的出價方式，我們認為價格會下跌。因此，我認為積壓情況很嚴重，你知道我會說什麼，你知道，定價水平，你知道，我們的鋼鐵成本可能比去年同期下降了 22% 左右，但價格僅下降了9%。所以價格保持在那裡相當不錯。這只是授予工作時間的問題，我們對今年年底將要完成的積壓工作感到非常滿意。我們明年的投標環境看起來非常相似。所以，我要說的是，你知道，當前的招標環境或招標水平，我的意思是，這些是，這些是，這些是鋼壓力管市場招標噸數的好年份，但是這些年並不長。最終，有了 IJ A 的資助，我們認為這些數字將會真正躍升，根據正在完成的項目數量，我們將達到 2,627 個和 28 個。因此，我認為我們面前有一條相當長的跑道，積壓量很大，鋼材價格將會上下波動。但我認為現在最重要的事情是，布倫，鋼製壓力管道方面的利潤率正在做出積極的反應，你知道，即使在環境還不錯的情況下，也達到了19.4％，環境中的投標水平和很多這是由於業務中發生的整合所致。所以我們對正在發生的事情感到非常滿意。鋼材價格將出現波動。而且，你知道，似乎有一個無形的障礙，價格約為每噸 700 美元，實際上並沒有比 25 年前的鋼鐵業低得多，你知道，你看到情況有所下降懸崖就像岩石一樣，你再也看不到了。因此，價格似乎會跌至每噸 700 美元左右，然後開始反彈，因為我們已經看到鋼材價格上漲的公告發布，最終也將影響積壓量。現在，這是一個冗長的答案，可能是針對您提出的一個相對簡單的問題。但我想我必須為你準備一堆這樣的東西。

I appreciate it, Scott. Maybe just, I guess a follow up on the, got it. I mean, if, if everything held constant with steel prices and I know they won't, how much of a, of a revenue headwind do you have going into next year? And sspp just from a pricing perspective? And I don't think that means any impact to your gross profit since it's essentially a pass through. But trying to get a sense of what kind of head when you'd still have it in next year, just from a pricing perspective, you.

我很感激，斯科特。也許只是，我想是後續行動，明白了。我的意思是，如果鋼鐵價格一切都保持不變，而且我知道不會，那麼明年的收入逆風會有多大？僅從定價角度來看 sspp 嗎？我認為這不會對您的毛利產生任何影響，因為它本質上是一種轉嫁。但是，僅僅從定價的角度來看，當你明年仍然擁有它時，試著了解一下是什麼樣的頭腦。

You know, I think that if it stays constant to where it is right now, you know what we're, you know, we're going through our annual planning process right now creating annual plan, you know, I don't, I don't see much of a change from, you know, I mean, this is a huge year. I mean, this, this is a really big year for steel pressure pipe the way it's coming in and you can do the numbers annualized and come out with. It's going to be, but I think we're, we're kind of looking at numbers that are, that are right in the 300 million plus range and, and that's without anything changes changing in the steel pricing. And if the steel price goes back up. Obviously, that'll carry more revenue and create not a better gross margin, but it'll create more gross profit dollars. So I don't think we have a huge headwind with that right now because we just don't see the steel price fall down to 345 or 350 bucks a ton. Now it stops at like 700 and the, and the pricing is relatively stable because the business has been consolidated down to really three major suppliers in the steel, pressure place, steel pressure bike market, us Thompson and American Spiral weld. So you have, you have the capacity in the hands of fewer people and, and, and ultimately, it's a, it's a more stable bidding environment because of it.

你知道，我認為如果它保持不變，現在的情況，你知道我們是什麼，你知道，我們現在正在經歷我們的年度計劃流程，制定年度計劃，你知道，我不，我沒有看到太大的變化，你知道，我的意思是，這是重要的一年。我的意思是，今年對於鋼製壓力管道來說是非常重要的一年，你可以對它進行年化並得出數字。會的，但我認為我們正在關注的數字正好在 3 億以上的範圍內，而且鋼鐵價格沒有任何變化。如果鋼材價格回升。顯然，這會帶來更多的收入，並不會創造更好的毛利率，但會創造更多的毛利。所以我認為我們現在並沒有遇到很大的阻力，因為我們只是看不到鋼材價格跌至每噸 345 或 350 美元。現在停在700左右，而且定價相對穩定，因為業務已經整合到鋼鐵、壓力場所、鋼壓自行車市場、美國湯普森和美國螺旋焊接三大供應商。因此，你擁有更少的人手中的能力，最終，這是一個更穩定的競標環境。

Very good. Just last one, I mean, it's a meaningful turnaround in revenue and precast this quarter, I guess. Taking all your commentary. It seems as though you think there's some sustainability in this trend going forward just given what you're seeing out there in the markets, product spread, etc.

非常好。我的意思是，最後一個是本季收入和預製件的有意義的轉變，我想。接受你所有的評論。考慮到您在市場、產品傳播等方面所看到的情況，您似乎認為這種趨勢的未來具有一定的可持續性。

Yeah, I would say we're, we're in a situation right now, Brett where, you know, we're, we're, we're, we're still not hitting on all cylinders with because the residential side of the business is off a little bit right now due to interest rates right. There was a little bit of a weather impact to the beginning of the third quarter, but the residential business has been off a little bit and that's, or excuse me, the nonresidential business has been off a little bit and that's mainly at the park facilities. But what we're seeing now and I'll say this before what we're seeing, going forward, we're seeing significant strength on the residential side of the business at the Geneva facilities. I mean, we're, we're looking at numbers where they're almost twice as big in revenue as when we purchased them back in 2020. And the residential side is really, really strong. But going forward, I think, you know, we continue to see that kind of strength because if you look at a lot of the indexes out there, you know, the total construction starts are only up about 2% right now, residential is up about 6%. And right now, nonresidential is pretty flat again because of the interest rate impact. Well, there's a 50 basis point drop that the FED did in September and the expectation of 2,525 basis point drops at the next two meeting meetings are, are starting to create a little bit more momentum in the dodge momentum index. And right now versus September of last year, the momentum index is about 21% higher than it was in September of 23. And most of that is on the commercial side and, you know, a little bit higher on the institutional side, but the institutional side is held in quite well. But the commercial side with these data center construction and hotels are starting to pick up all those things and all that indicates a a pretty strong nonresidential market coming at us. So if we continue to have the strength that we're seeing in residential at the Geneva facilities and start hitting on all cylinders in the nonresidential market comes back strength wise. We expect that to continue to grow as we go into next year and beyond. So we see a lot of strength in that business right now. So I think that there's some sustainability there and there's some growth plans there that you're going to continue to see that grow. You know, even before you're considering any M&A activity that we may be working on at this point. So I think there's good sustainability there.

是的，我想說我們，我們現在的情況，布雷特，你知道，我們，我們，我們，我們仍然沒有全力以赴，因為住宅方面由於利率的影響，該業務目前略有下滑。第三季初受到了一些天氣影響，但住宅業務有所下滑，或者對不起，非住宅業務有所下滑，主要是在公園設施方面。但我們現在所看到的，我會在我們所看到的之前說這一點，展望未來，我們看到日內瓦設施的住宅業務方面具有顯著的優勢。我的意思是，我們正在研究的數字，它們的收入幾乎是我們 2020 年購買它們時的兩倍。住宅方面真的非常非常強大。但展望未來，我認為，我們會繼續看到這種強勢，因為如果你看一下那裡的許多指數，你就會知道，目前總開工率僅增長了約 2%，住宅增長了約6%。目前，由於利率的影響，非住宅再次表現平平。嗯，聯準會在 9 月降息了 50 個基點，並且預計接下來的兩次會議將降息 2,525 個基點，這開始為道奇動量指數創造更多動力。現在與去年9月相比，動量指數比23日9月高出約21%。其中大部分是在商業方面，你知道，在機構方面略高一點，但機構方面保持得很好。但這些數據中心建設和酒店的商業方面正開始吸收所有這些東西，所有這些都表明一個相當強勁的非住宅市場正在向我們襲來。因此，如果我們繼續保持日內瓦工廠住宅市場的強勁勢頭，並開始在非住宅市場全力以赴，那麼我們就會恢復強勁。我們預計，進入明年及以後，這一數字將繼續增長。所以我們現在看到該業務有很大的實力。所以我認為那裡有一些可持續性，並且有一些增長計劃，你將繼續看到這種增長。您知道，甚至在您考慮我們目前可能正在進行的任何併購活動之前。所以我認為那裡有很好的可持續性。

All right, very good. I'll pass it on. Thanks guys.

好的，非常好。我會把它傳遞下去。謝謝你們。

No problem.

沒問題。

The next question comes from Hulio Romero Thethosi & company. Please proceed.

下一個問題來自 Hulio Romero Thethosi & 公司。請繼續。

Hey, good morning, Scott and Aaron.

嘿，早上好，史考特和亞倫。

Hi, good morning.

嗨，早安。

Hey morning, what do you guys attribute the resilience of the residential portion forecast.

早安，你們對住宅部分預測的彈性有何看法？

You know, I think it's, it's the same thing that's been going on. It's the, it's the net migration into the state of Utah and in and around Utah and housing markets is very, very strong and we've, we've seen it. We were, we were worried as we've talked before a couple of years ago about it falling off with the, with the, with the increase in the interest rates, but we just have not seen it. In fact, it's continued to get stronger and stronger. You know, there's, and there's, there's a, there's some pent up demand in the housing market because of when the interest rates were high. There, there, there isn't enough inventory on the market. So houses are still being built in Utah, in and around Utah. Idaho is a pretty good place for people to move to and live. And that's really what we attribute the strength to. Plus I think it's, we've got a, we've got a really good, we've got a really good management team at the Geneva facilities and they're, they've been very good at executing growth in the market and focusing on getting the price up and things like that and, and it's just a strong market and we're making sure that, you know, we're doing the right things in the market to continue to grow the business.

你知道，我認為這與一直在發生的事情是一樣的。這是進入猶他州以及猶他州及其周邊地區的淨移民，房地產市場非常非常強勁，我們已經看到了。我們很擔心，正如我們幾年前談到的那樣，隨著利率的上升，它會下降，但我們只是沒有看到它。事實上，它還在繼續變得越來越強大。你知道，由於利率高，房地產市場存在一些被壓抑的需求。在那裡，那裡，市場上沒有足夠的庫存。因此，猶他州、猶他州及其周邊地區仍在建造房屋。愛達荷州是一個非常適合人們搬遷和居住的地方。這確實是我們賦予力量的原因。另外，我認為，我們在日內瓦工廠擁有一支非常優秀的管理團隊，他們非常擅長執行市場成長，專注於提高價格之類的事情，而且這是一個強勁的市場，我們要確保，你知道，我們在市場上做正確的事情以繼續發展業務。

Got it that's helpful and, and you expect, you mentioned, you expect the non residential portion of precast to strengthen in the near term due to interest rates falling. Just trying to, you know, if you could help us put a finer point on the timing of that strengthening is, you know, is that like a first half, 25 event, a second half, 25 event or, or maybe even 26? And then secondly, how much of that near term strengthening of non res should be from interest rates falling versus maybe an increase in public spending flowing through.

明白了，這很有幫助，而且您預計，您提到，由於利率下降，您預計預製件的非住宅部分將在短期內走強。只是想，你知道，如果你能幫助我們更好地說明加強的時間安排，你知道，是像上半場、25 場比賽、下半場、25 場比賽還是甚至 26 場比賽？其次，短期非資源的加強有多少應該來自利率下降，而不是公共支出的增加。

Okay. So the, the first part was, was what piece again, what was the, what was the first part.

好的。所以，第一部分是什麼，又是什麼，第一部分是什麼。

Just trying to the question of a finer point of, of the timing of when nonres gets better, like, you know? Yeah. Is there maybe a first half event or.

只是想問一個更精細的問題，即非雷斯何時變得更好的時機，就像，你知道嗎？是的。是否有上半場事件或。

Normally, normally Julio when, when you're looking at these things in this momentum index, it's usually projects that are going into planning about 12 months before the project actually breaks ground or starts. But with the interest rates coming down, this the time that these things are, are the fruition starts to get a bit compressed because people have been waiting to do stuff for the interest rates to come down. So you're probably seeing, we're starting to see the beginning of it right now where you know, some of the yards of production of concrete at our park facilities are going up quarter over quarter versus last year. So it's starting to move up. So what you're probably seeing is a mid 25 or a little bit past that mid 25 event when it really starts to strengthen and, and I think it's going to be, it's going, it's going to strengthen slowly and then what we're going to see is it really strengthen when we get out to mid to later 2025 and you know, at that point, we expect to have both the residential and nonresidential hitting on, on, on all cylinders. What was the next part of that question? Yeah.

通常情況下，胡里奧，當你在這個動量指數中查看這些事情時，通常是在專案實際破土動工或開始之前大約 12 個月就開始計劃的專案。但隨著利率下降，這些事情的成果開始變得有點壓縮，因為人們一直在等待為利率下降做點什麼。所以你可能會看到，我們現在開始看到它的開始，你知道，我們公園設施的一些混凝土生產碼數與去年相比逐季增加。所以它開始向上移動。所以你可能會看到 25 月中或 25 月中稍晚一點的事件，當它真正開始加強時，我認為它將是，它會慢慢加強，然後我們會發生什麼當我們到2025 年中後期時，我們將看到它是否真的會加強，到那時，我們預計住宅和非住宅都會全力以赴。這個問題的下一部分是什麼？是的。

That, that's, well, you, you, you answered the question I had even after that, which was, you know, the residential should stay resilient as, as the non res gets better and then you are kind of hitting on all cylinders. Go going out. The second part of my question was really just, you know, how much of that near term strengthening of non res should be from interest rates falling, but also from, you know, an increase in public spending iig A funds flowing through, etcetera.

那就是，嗯，你，你，你甚至在那之後回答了我的問題，那就是，你知道，住宅應該保持彈性，因為非資源變得更好，然後你就會全力以赴。出去走走吧我的問題的第二部分實際上只是，你知道，近期非資源的加強有多少應該來自利率下降，但也來自，你知道，流經資金的公共支出增加等等。

Yes. So for the, you know, really, when we're talking about the non the nonres and res, we're talking about the precast piece, right? So, so the the interest rates are, are really, really going to drive that and it's really going to be more commercial than the the nonbuilding residential side is really more the II stuff or taking into account what that's going to do with the steel pressure pipe business. So we haven't even really seen any of that yet. That's I think all in front of us based on what we can see. So it's the interest rates are just kind of lighting the fire and the more they come down, the fire is going to rise, you know, and the business gets stronger and stronger. And for us on the residential side as we talked about in the script, you know, we have the exact 2,500 facility getting ready to start up and what that does is going to, it's going to increase our capacity and increase our efficiency in the residential market in and around Utah. And that's just going to lead to higher production capacity and higher revenues and margins in residential. So we see we see growth going the 25 on on the precast side and the the the increase in the nonresidential market can really really, I guess push that up as we go late into 2025. So the prospects really look strong.

是的。因此，實際上，當我們談論非非資源和資源時，我們談論的是預製件，對吧？所以，利率真的真的會推動這一點，而且它真的會比非建築住宅方面更加商業化，更多的是II的東西，或者考慮到這對鋼鐵壓力的影響管道業務。所以我們還沒有真正看到這些。這就是我認為基於我們所看到的一切就在我們面前。所以利率只是點燃了火，利率降得越多，火就會上升，你知道，業務會變得越來越強大。對於住宅方面的我們來說，正如我們在劇本中談到的，您知道，我們有 2,500 個設施正準備啟動，這將增加我們住宅的容量並提高我們的效率猶他州及週邊地區的市場。這只會帶來住宅領域更高的產能、更高的收入和利潤。因此，我們看到預製件方面的成長將達到 25%，而且非住宅市場的成長確實會推動這一成長，我想隨著 2025 年末的到來，這一增長會進一步推高。所以前景看起來確實很光明。

Great context there. And then maybe just last one for me would be on talking about the free cash flow a little bit, you know, you had another strong quarter here even as steel pressure pipe continues to do well. And Erin, I think you mentioned that, you know, the working capital needs of SPP can be variable on a quarter to quarter basis. We saw the day sales tick up a little bit sequentially. Does that day sales figure kind of continue to trend upward as steel pressure pipe continues to do well.

那裡的背景很好。然後也許對我來說最後一個是談論自由現金流，你知道，儘管鋼製壓力管繼續表現良好，但這裡又經歷了一個強勁的季度。艾琳，我想您提到過，SPP 的營運資金需求可能會隨著季度的變化而變化。我們看到當日銷售額連續略有上升。隨著鋼製壓力管繼續表現良好，當天的銷售數字是否會繼續呈現上升趨勢？

Yeah, you know, it it does tend to go that direction, especially in the, the the two larger quarters of the year, which is typically a second and the third quarter.

是的，你知道，它確實傾向於這個方向，特別是在一年中兩個較大的季度，通常是第二季度和第三季度。

Yeah, it's not atypical for the fourth quarter days to kind of fall off a little bit and to see a little bit more working capital efficiency come through, in, in your, in your fourth quarter free, be lifted up by a little bit of a drop there. Now, our, our business levels, aren't something right now that we're, we're expecting to see as much of 1/4 quarter fall off as we've seen in other years. We're actually expecting them to stay real elevated. So I'm not I think we'll get a little bit of it. Julio in, in, in the next fourth quarter, more, more working capital bounce in our free cash than we got in the second quarter compared to or sorry, the third quarter compared to the third quarter of a year ago. But I think the biggest thing is really kind of propelling our, our cash flow flows for this year is really our, our profitability.

是的，第四季度的天數略有下降，並看到更多的營運資金效率出現，這並不罕見，在你的第四季度自由，被一點點提升那裡有一滴。現在，我們的業務水平並不像我們在其他年份看到的那樣，我們預計會看到 1/4 個季度的下降。我們實際上期望他們保持真正的高位。所以我不認為我們會得到一點。胡里奧，在接下來的第四季度，我們的自由現金中的營運資金反彈比我們在第二季度得到的更多，更多，或者對不起，與去年同期相比，第三季度。但我認為最重要的是推動我們今年的現金流確實是我們的獲利能力。

You know, and another piece of that Julio is the, the thing that we've worked on with cash flow is is making sure that we're mining the cash out of the steel pressure pipe business. And that a big piece of that is, is getting paid for progress payments for, for steel pressure pipe, getting paid upfront for steel and in anything we can get paid upfront with. And that's really contributing to the cash flow too, going forward along with, you know, the the efficiency of how we're managing the cash now. So I think that that's such a focus because that's, you know, part of the part of the goals this year and the variable compensation is really to drive a cash flow for the company, which you know, obviously we know means means a lot and it means not maybe not quite as much as the profitability of the business, but it means a lot cash is king, right? So, so the idea to get cash in is really, really being driven into the business now and the way we approach the business and, and I think the team is responding well to getting that cash in and, and really, you know, bumping up the cash flow that's going to continue to be a focus for us.

你知道，胡里奧的另一件事是，我們在現金流方面所做的工作是確保我們從鋼製壓力管道業務中挖掘現金。其中很大一部分是獲得鋼製壓力管的進度付款、鋼鐵的預付款以及任何我們可以預付款的東西。這也確實對現金流做出了貢獻，同時也提高了我們現在管理現金的效率。所以我認為這是一個重點，因為這是今年目標的一部分，而可變薪酬實際上是為了推動公司的現金流，你知道，顯然我們知道這意味著很多，這意味著可能不像企業的盈利能力那麼多，但它意味著大量現金為王，對吧？因此，獲得現金的想法現在確實被帶入了業務以及我們處理業務的方式，而且我認為團隊對獲得現金的反應很好，並且真的，你知道，碰撞增加現金流將繼續成為我們關注的焦點。

Really helpful. Thanks again for taking the questions.

真的很有幫助。再次感謝您提出問題。

Sure, Hulio.

當然，胡利奧。

The next question comes from Ted Jackson with Northland Securities. Please proceed.

下一個問題來自北國證券公司的泰德傑克森。請繼續。

Thanks. Congratulations on another excellent.

謝謝。恭喜又一個優秀的人。

Quarter He did.

他做到了。

First of all, I'm going to tell you that I have a couple of friends that have decamped from California and moved to Utah. So they're helping you out the coast and they live within Utah.

首先，我要告訴你，我有幾個朋友從加州搬到了猶他州。所以他們正在幫助你離開海岸，他們住在猶他州。

The more you can push that, the better we're going to be.

你越能推動這一點，我們就會越好。

So I'll trust you man, like their houses, took a lot of concrete to build their big on on the SPP and the backlog. You know, you've, you've put up a couple of quarters of really really excellent margin. And if you look at it, you know, you're, you know, up at like, you know, how, you know, at the higher end of kind of the historicals for, you know, the margin you're generating out of that business. And I know some of that capacity, you know, utilization rates and such. But when we look, or when you look into the backlog that you have, what's the margin profile for that? I mean, were we able to maintain that, you know, call it 19 ish percent margin and SPP in fourth quarter? And then how do we think about that for 2025?

所以我相信你，夥計，就像他們的房子一樣，花了很多混凝土來在 SPP 和積壓的基礎上建造他們的大房子。你知道，你已經，你已經提供了幾個季度非常非常好的利潤。如果你看看它，你知道，你知道，你知道，你知道，你知道，你知道，你知道，在歷史的高端，你知道，你正在產生的利潤該業務的。我知道其中一些容量，利用率等等。但是，當我們查看時，或者當您查看積壓的訂單時，其利潤率是多少？我的意思是，我們是否能夠在第四季度保持 19% 左右的利潤率和 SPP？那我們該如何看待 2025 年的情況呢？

Yeah, I think that the thing about the fourth quarters is weather events, right? Is what are we going to have weather events, icing storms, things like that and, you know, you have two major holidays in the fourth quarter. So generally it's a little bit lower. So, I don't know that the 4th 4th quarter is going to be as indicative as to what we're going to see going forward. We think the margins be strong like it's been going, going through this year, but we don't think that it's, it's going to be like we're going to see it in 2025 right? Because we're expecting production levels in, in, in business levels to be similar to 2024. There's been a lot of stuff, bidding a lot of stuff in the fourth quarter. So the margins in backlog are are very strong. But a really big thing is is the overhead absorption, right? The the amount of production that we've been getting has been relatively strong right now, I would tell you we're at about 65% capacity capacity utilization at our steel pressure pipe facilities. And that is a pretty strong capacity utilization. So if we stay up at those levels, I think you see margins stay up like that and maybe even get a little bit higher when you start putting multiple strong years together with demand. That's when you start seeing margins in the steel pressure pipe business that start beginning with a two and it being sustainable and 2025 looks like it's going to be a decent bidding year too, but not like I think what we're going to see in 2,627 seven and 28 with the II funding. I think those are the years where you can see margins be, be very strong. And what I'll, what I'll tell you is, you know, we don't, we don't announce our results on a monthly basis, but we have seen months recently that have been over 20% margins in steel pressure pipe. So, so that's a good sign and it's a good sign for going forward, especially with the bidding that we expect to see.

是的，我認為第四季的問題是天氣事件，對吧？我們將會遇到天氣事件，冰暴，類似的事情，你知道，第四季有兩個重大假期。所以一般來說會比較低。所以，我不知道第四季是否能說明我們未來會看到什麼。我們認為利潤率會像今年一樣強勁，但我們不認為我們會在 2025 年看到這種情況，對嗎？因為我們預期業務水準的生產水準將與 2024 年相似。第四季發生了很多事情，競標了很多東西。因此，積壓訂單的利潤非常可觀。但真正重要的是開銷吸收，對吧？我們目前的產量相對強勁，我可以告訴您，我們的鋼壓力管設施的產能利用率約為 65%。這是一個相當強勁的產能利用率。因此，如果我們保持在這些水平，我認為你會看到利潤率保持這樣的水平，當你開始將多個強勁的年份與需求結合在一起時，甚至可能會更高一點。那時你開始看到鋼壓力管道業務的利潤率從 2 開始，並且是可持續的，2025 年看起來也將是一個不錯的投標年，但不像我認為我們將在 2,627 年看到的那樣7 和28 是由II 資助的。我認為那些年你可以看到利潤率非常高。我要告訴你的是，你知道，我們不會每月公佈我們的業績，但我們最近幾個月看到鋼鐵壓力的利潤率超過 20%管道。所以，這是一個好兆頭，也是一個前進的好兆頭，尤其是我們期望看到的招標。

So if I were to take what you just told me, consolidate it down, if you take out the utilization, which I completely understand that, you know, the next couple of quarters, it seems like there's always something that happens and it's beyond your control. But that the business you have in pipeline and the outlook that you see for the next few years, results in all else being equal, a better margin environment. And it will push you, you know, if, you know, if it comes to pass the way it looks like it might push you into, let's call it sort of on an average basis. You know, historical records. You, if you get, if you're starting to push regular margins north of 20% I mean, that's, that's, that's the top of the top for you guys, isn't it?

因此，如果我要接受你剛才告訴我的內容，將其合併下來，如果你去掉利用率，我完全理解，你知道，接下來的幾個季度，似乎總是會發生一些事情，而且它超出了你的能力範圍。但是，您正在醞釀的業務以及您對未來幾年的展望，會導致其他條件相同，從而帶來更好的利潤環境。它會推動你，你知道，如果，你知道，如果它以看起來可能推動你的方式通過，我們可以稱之為平均水平。你知道，歷史記載。你，如果你開始將常規利潤率推高到 20% 以上，我的意思是，那是，那是，這對你們來說就是頂峰，不是嗎？

That's right. I think we've seen, we've seen margins in the past and in quarterly margins and you have to correct me if I'm wrong. But I think we've seen them as high as 25% in a quarter when we had a lot of work going on. So, but when, but I think what you're saying is right ted, I think when you start getting over, over 20% 21,22 that's probably about the top of it that we've seen. But, you know, we haven't seen an environment like this with IIJ A funded jobs coming at us and, you know, who knows? I mean, we, you know, you could see those margins get into the mid 20s again, if, if all that hits like we think.

這是正確的。我認為我們已經看到，我們在過去和季度利潤中都看到了利潤，如果我錯了，你必須糾正我。但我認為，當我們進行大量工作時，我們在一個季度內看到了高達 25% 的比例。所以，但是，但是我認為你說的是對的，我認為當你開始克服時，超過 20% 21,22 這可能是我們所看到的最高點。但是，您知道，我們還沒有看到像 IIJ A 資助的工作機會這樣的環境，誰知道呢？我的意思是，我們，你知道，如果一切都像我們想像的那樣，你可以看到這些利潤率再次達到 20 多歲。

Okay.

好的。

Okay. I'm switching over to CapEx. So you had, you know, you had a big, big piece of CapEx during 2024 with the Geneva Plant and you know, the $8 million that you you put into the the Park Lake, the Salt Lake City expansion. When I think about 2025 CapEx, would you, is there other projects like that? They're going to come in to keep CapEx from falling off or would we see CapEx drop down from, you know, what are you probably going to do? Call it 20 million? Do you know what I'm asking? What, what when I think about CapEx, you know, if you have a, I mean, that's a really big project and I know you've had big projects in the past, but, you know, like when would we see it come back down to like a 21 level where you're, you know, like 1,314 million bucks? Is there something else on deck that's going to keep it up around 20?

好的。我要轉向資本支出。所以，2024 年，日內瓦工廠投入了大量資本支出，並且投入了 800 萬美元用於帕克湖和鹽湖城的擴建。當我想到 2025 年資本支出時，還有其他類似的項目嗎？他們將介入以防止資本支出下降，或者我們會看到資本支出下降，你知道，你可能會做什麼？說是2000萬？你知道我在問什麼嗎？什麼，當我想到資本支出時，你知道，如果你有一個，我的意思是，這是一個非常大的項目，我知道你過去也有過大型項目，但是，你知道，就像我們什麼時候能看到它來一樣回到 21 的水平，你知道，大約 13.14 億美元？甲板上還有其他東西可以保持在 20 左右嗎？

No, I don't, I don't think it comes down to like a 12 or 13. But, you know, I think when we've looked at this going forward with the things that we're doing, I think in the area of 16,17,18 is probably reasonable unless we have a big project like we, we did with the exact 2,500 in Salt Lake City, you know, that project was, was a, you know, over a number of years was in excess of $20 million so spent on that project. So, so ultimately, if you look at in the level in the area of depreciation, minus a big project like that, it's probably right and it's probably right in the $16,$17 $18 million range.

不，我不，我不認為這可以歸結為 12 或 13。但是，你知道，我認為當我們考慮到我們正在做的事情時，我認為在 16、17、18 領域可能是合理的，除非我們有像我們這樣的大項目，我們做了鹽湖城的2,500 人，你知道，這個計畫多年來花在該計畫上的費用超過2,000 萬美元。所以，最終，如果你看看折舊領域的水平，減去這樣的大項目，它可能是正確的，而且可能在 16、17 美元、1800 萬美元的範圍內。

Okay. And then just circling over to the M&A I know you guys, you know, have been looking hard knocking around trying to find stuff. I mean, you described your ideal acquisition and I hope you find because it sounded perfect. But is, is there something like that, is there something like that that you're actually in process of discussing? I mean, you know, I mean, you know, that we, you know, we're getting to the point where I would say that most of the things that you wanted to get done with regards to bringing Geneva and Park into Northwest Pipe and kind of, you know, cross pollinating if you would for those businesses, they're well along and, you know, I know, you know, it's not that you haven't, disdained doing any acquisitions, but ideally your thought to me had always been, you know, that, you know, it would be best that once you get this integration work done, I really have something kind of come in and I think you're kind of at that point now, I mean, where, what's the time line? Can we see something in 2025? I mean, is it that active or, you know, you're just still knocking around trying to find it?

好的。然後談到併購，我知道你們一直在努力尋找東西。我的意思是，您描述了您理想的收購，我希望您能找到，因為它聽起來很完美。但是，有類似的事情嗎？我的意思是，你知道，我的意思是，你知道，我們，你知道，我們已經到了這樣的地步，我想說的是，關於將日內瓦和帕克納入西北管道，你想要完成的大部分事情你知道，如果你願意為這些企業進行異花授粉，他們進展順利，你知道，我知道，你知道，這並不是說你沒有，不屑於進行任何收購，但理想情況下你的想法是我一直都是，你知道，你知道，最好是一旦你完成了整合工作，我真的有某種東西進來，我認為你現在就在那個點上，我的意思是，地點、時間是什麼？2025 年我們能看到一些東西嗎？我的意思是，它有那麼活躍嗎？

Yeah, we would like to, we would like to have something by 2025. Right. I mean, we're, we're always working on things. We're, we're always in discussions with people on, on M&A and, and it's a, it's an area of focus and ultimately, we would like to have something done by 2025.

是的，我們希望，我們希望在 2025 年之前有所作為。正確的。我的意思是，我們一直在努力。我們一直在與人們討論併購問題，這是一個重點領域，最終，我們希望在 2025 年之前有所作為。

That's what.

就是這樣。

Is you're, you're, you're. Putting. You're putting.

你是，你是，你是。推桿。你在放。

So then my, my final question and I'll let you go, Scott is just talking about backlog a bit, you know, you always put forth the backlog number on a dollars basis, which is fine, but, you know, given the volatile and you touched on this a bit with, within the context of today's call. But, you know, the volatility within steel prices, could you offer some, you know, like color, not, I know you don't want to get into too much detail about it about kind of what's the, the volume of backlog that you have relative to say 12 months ago and last quarter and kind of how you see it rebounding because you are clearly expecting it to rebound in the fourth quarter, you know, in the fourth quarter. But, you know, like this kind of something to kind of sort of apples to apples it for us.

那麼，我的最後一個問題，我就讓你走吧，斯科特只是談論了一點積壓，你知道，你總是以美元為基礎提出積壓數量，這很好，但是，你知道，考慮到不穩定，您在今天的電話會議中談到了這一點。但是，你知道，鋼材價格的波動，你能提供一些，你知道的，比如顏色，不，我知道你不想透露太多細節，比如積壓的數量。言，以及你如何看待它的反彈，因為你顯然預計它會在第四季度反彈，你知道，在第四季度。但是，你知道，對我們來說，就像這種事情一樣。

Yeah. So I, I think the, the way, no, the way to look at it is, is the volume right now is, is, is a little bit lower than it was. So part of the thing that, that makes up a backlog is when we have a lot of tunnel work in backlog, we, we refer a few that we refer to that as long, long fuse work because it, it's tons are in backlog that can be in there for, for sometimes two years before it actually turns into orders. Well, we don't, we don't have much of that tonnage in backlog right now. The what we have in backlog is actionable and it's down a little bit from the, the place the areas that you just asked about. But we are also waiting for tons to come in and hit the backlog, which should start pushing us back up to where we've been tonnage wise as we get through the end of this year and early next year. So we're not, we haven't really fallen off that much. And like I said, steel prices are, are down year over year for us and you look at consume steel prices about 22%. Our price is only off 9% year over year. So the prices are staying up pretty high. And so it's, it's, it's, it's not quite apples to apples, but the tons are going to be pretty similar as we get through the end of this year, Ted to, to those other periods that you asked about.

是的。所以我，我認為，不，看待它的方式是，現在的成交量比以前低了一點。因此，構成積壓的部分原因是，當我們有大量隧道工作積壓時，我們提到了一些我們稱之為長、很長的熔斷器工作，因為積壓了大量的工作，在它真正變成訂單之前，可能會在那裡待上兩年，有時甚至兩年。好吧，我們沒有，我們現在積壓的噸位不多。我們積壓的內容是可操作的，並且比您剛才詢問的領域有所下降。但我們也在等待噸位的到來並解決積壓問題，這應該會在今年年底和明年初將我們推回到我們一直在噸位方面的水平。所以我們沒有，我們並沒有真正下降那麼多。正如我所說，我們的鋼材價格逐年下降，消耗鋼材價格下降了約 22%。我們的價格年比僅下降 9%。所以價格一直居高不下。所以，它是，它，這並不完全是同類，但到今年年底，數量將與你問到的其他時期非常相似。

Okay. Okay. That's a fair answer. Again, congrats on the quarter. It was, it was.

好的。好的。這是一個公平的答案。再次恭喜本季。曾經是，曾經是。

Impressive.

感人的。

Always good to talk to you.

和你說話總是很開心。

The next question comes from David Wright with Henry Investment Trust. Please proceed.

下一個問題來自亨利投資信託公司的大衛·賴特。請繼續。

Yeah, good Morning.

是的，早安。

Good morning.

早安.

Hey, well, I'll offer my congratulations 10 million that you got your 20% margins.

嘿，好吧，我要祝賀你獲得了 20% 的利潤，1000 萬美元。

So, you know, you've been at it a long time and it's, it's got to feel good to, to have all the cylinders firing. And thanks for that extensive discussion about SPP margins that that Ted asked you about and that was super informative. I wanted to ask about, you said that in precast, the better, it sounded like Utah was really good. You know, how would that contrast with how Texas was?

所以，你知道，你已經從事這個工作很長時間了，所有的汽缸都在燃燒，感覺一定很好。感謝 Ted 向您詢問有關 SPP 利潤的廣泛討論，內容非常豐富。我想問一下，你說預製的越好，聽起來猶他州確實不錯。你知道，這與德克薩斯州的情況有何不同？

Well, Texas has been lighter volumes, Ted or excuse me, David. So that's been down a little bit. So the margins are probably on, on the residential side are, are at this point probably a few to several 100 basis points higher than the nonresidential side because of the amount of absorption that's going on in the higher level of business. And, you know, we're not quite hitting on all cylinders point because like I said, the nonres is, is, is relatively light and that's those are the park facilities and it's just starting to come back. So ultimately, when, when that comes back, we expect the margins at Park to be as good if not better than they are at, at the at the Geneva facilities because obviously it's more of a specialty product. So it is down though right now and in the in the Geneva facilities are about, I'd say a few to several 100 basis points higher at this point.

好吧，德克薩斯州的銷量較輕，特德，或者對不起，大衛。所以這個數字已經下降了一點。因此，住宅方面的利潤率可能比非住宅方面高幾個到幾百個基點，因為更高水準的業務正在吸收大量資金。而且，你知道，我們還沒有完全擊中目標，因為就像我說的，非資源相對較輕，那是公園設施，而且剛開始恢復。因此，最終，當這種情況回來時，我們預計 Park 的利潤率將與日內瓦工廠的利潤率一樣好，甚至更好，因為顯然它更多的是一種特色產品。因此，儘管現在在日內瓦的設施中，它已經下降了，但我想說，此時它已經上升了幾個到幾百個基點。

Okay. And, and, and when you, you mentioned in the press release, you talk about increase in volume, decrease in selling price due to changes in product mix and precast. What what products are you? Are you selling a lot of.

好的。而且，並且，當您在新聞稿中提到時，您談到了由於產品組合和預製件的變化而導致的銷量增加和售價下降。你是什​​麼產品？你賣很多嗎。

Well, the Geneva part, the Geneva products are a bigger part of the precast mix right now. So those are more infrastructure products that are generally carrying lower selling prices than what you see of the park products. So that's, that's part of, that's a big part of the product mix. The other thing that we're seeing a lot of is covert work, especially at in the Geneva facilities and, and that culvert work is, is not a huge price item, but it's a lot of, it's a lot of concrete and it carries a really good margin. And so that's, that's a little bit of what's affecting it too. But overall, it's really the higher mix of Geneva shipping in Precast versus, you know, what we saw, you know, maybe a couple of years ago and that's that's what I would attribute it to.

嗯，日內瓦部分，日內瓦產品現在是預製組合的重要組成部分。因此，這些更多的基礎設施產品通常比您所看到的公園產品的售價更低。所以這是產品組合的重要組成部分。我們看到的另一件事是秘密工作，特別是在日內瓦的設施中，涵洞工作並不是一個巨大的價格項目，但它是很多，它是很多混凝土，它承載著一個非常好的利潤。所以，這也是影響它的一點因素。但總體而言，與我們幾年前所看到的相比，預製件中的日內瓦運輸確實是更高的組合，這就是我將其歸因於的原因。

Okay. Well, that's all I have. And again, congratulations and thank you.

好的。嗯，這就是我所擁有的。再次表示恭喜和感謝。

Great to talk to you, David.

很高興與你交談，大衛。

Thank you at this time. There are no further questions in queue. I'd like to turn the call back to Scott Montross for closing comments.

這次謝謝你了。隊列中沒有其他問題。我想將電話轉回斯科特·蒙特羅斯以徵求結束意見。

Yeah, just a few, a few takeaways before we, we leave. Obviously, we expect to finish with a strong fourth quarter really at levels that are, are strong for 1/4 quarter of the year. And you know, as we've talked about in, in the, in this call, we expect 2025 to be very similar to what we saw in 24 on the steel pressure pipe side. And we expect to continue to gain strength on the precast side. So we're positioned pretty strongly for, for the near term and midterm on both SPP and on the precast side. And ultimately, we're going to get some tailwinds from the I funded stuff or the, the, the work that's going to be funded by the, the, the infrastructure package. And it probably really kicks us into high gear as we get through 25 into 2026. And you know, again, we expect to see the precast business strengthen over that period of time. And you know that we've talked about the product spread, the product spread is going fairly well and we're the the business, the park product business at the Geneva facilities is continuing to grow. And ultimately, you know, we're going to spread that park products to other Northwest pipe locations and, and spread that product across the country. So, and if you look at, and I've said this before, if you look at where we are in the, in the third quarter of 2024 we were, we were at 100/130 million in revenue and 27 million of gross profit in just the third quarter compared to 2017, the full year of 2017 was 132 million or 133 million of revenue. And I think it was something about like $5 million of gross profit. So obviously, the company significantly over that period of time and that's a path that we're going to remain on not only through organic growth with product spread to taking products to different locations, but also on the M&A side. So, so ultimately, we, we have a lot of runway in front of us and are going to continue to grow the company. And I just want to thank everybody on the call and, and all the employees for, for their support and, and dedication to this business. And we look forward to speaking to you again in March when we talk about full year results. So, thank you very much.

是的，在我們離開之前，只是一些、一些外賣。顯然，我們預計第四季度的業績將達到今年 1/4 季度的強勁水平。你知道，正如我們在本次電話會議中所討論的那樣，我們預計 2025 年將與我們在 24 年所看到的鋼製壓力管道方面非常相似。我們預計預製件方面將繼續增強實力。因此，我們在 SPP 和預製方面的近期和中期定位相當強勁。最終，我們將從我資助的東西或將由基礎設施包資助的工作中獲得一些順風。當我們進入 2026 年的 25 週年之際，它可能真的會讓我們進入高速運轉狀態。你知道，我們再次預期預製件業務將在這段時間內加強。你知道，我們已經討論了產品傳播，產品傳播進展得相當順利，我們是業務，日內瓦工廠的公園產品業務正在持續成長。最終，您知道，我們將將該公園產品推廣到其他西北管道地點，並將產品推廣到全國各地。所以，如果你看看，我之前說過，如果你看看我們在 2024 年第三季度的情況，我們的收入為 100/130 百萬美元，毛利為 2700 萬美元僅與2017年第三季度相比，2017年全年營收為1.32億美元或1.33億美元。我認為毛利約為 500 萬美元。顯然，該公司在這段時間內取得了顯著的發展，我們將繼續走這條道路，不僅透過產品傳播的有機成長將產品帶到不同的地點，而且還透過併購方面。所以，最終，我們面前有很多跑道，並將繼續發展公司。我只想感謝參加電話會議的每個人以及所有員工對這項業務的支持和奉獻。我們期待在三月再次與您交談，討論全年業績。所以，非常感謝。

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。